Updates, advisories and surprises

(6:45 PM ET) CHICAGO (MarketWatch) -- News Corp.
NWSNWS, -1.47%
"isn't talking to anybody right now," said Chief Operating Officer Peter Chernin when asked if the commpany is talking to AOL
TWX, -0.28%
Yahoo
YHOO
or Microsoft
MSFT, +0.00%
about a possible deal or alliance. Chernin, talking with reporters on a conference call Tuesday, indicated that there had been previous discussions with one or more of those entities, but those talks "obviously went nowhere."

Murdoch: Some Cablevision channels attractive at right price

(6:40 PM ET) CHICAGO (MarketWatch) -- News Corp.
NWSNWS, -1.47%
Chairman Rupert Murdoch said Tuesday that some of the Rainbow Media channels owned by Cablevision
CVC, -0.47%
could be "attractive at the right price." Speaking during a conference call with reporters, Murdoch declined to say which channnels would be the most appealing. Cablevision said it is pursuing a number of strategic alternatives, including possible spinoffs or sales of some of its assets. Rainbow Media channels include AMC, Independent Film Channel, We and several regional sports channels.

Chernin: Hulu should be seen as sub for broadcast reruns

(6:35 PM ET) CHICAGO (MarketWatch) -- Online video provider Hulu.com should be seen as a replacement for broadcast television reruns, once a vital cash cow for studios, News Corp.
NWSNWS, -1.47%
Chief Operating Officer Peter Chernin said Tuesday. Speaking to analysts during a conference call, Chernin said News is "careful" to make sure that new media efforts, including ad-supported online streaming, content sold through avenues like Apple Inc.'s iTunes, or video-on-demand, provide profit margins that are better than traditional media outlets. "We'd rather have people watch video-on-demand than [rent DVDs], because the margins are stronger for us," Chernin said.

News Corp.: Sees revenue growth 'low to mid single digits'

(6:22 PM ET) CHICAGO (MarketWatch) -- News Corp.
NWSNWS, -1.47%
Chief Financial Officer Dave DeVoe said the media company should post revenue growth that will exceed fiscal 2008 totals by a "low to mid single digit" percentage in fiscal 2009, excluding Fox Interactive Media. "To the extent the economy improves, we would do better than that," DeVoe told analysts on a conference call.

Murdoch: Downplays further acquisition plans

(6:18 PM ET) CHICAGO (MarketWatch) -- News Corp.
NWSNWS, -1.47%
Chairman Rupert Murdoch said Tuesday that rather than look for more acquisitions, the company will make its balance sheet its "No. 1 priority." During a conference call with analysts, Murdoch said "there's enough uncertainty around" to keep the company's focus away from large buyout targets.

Jack in the Box third-quarter net income falls

(6:17 PM ET) SAN FRANCISCO (MarketWatch) -- Jack in the Box Inc.
JBX, +6.09%
late Tuesday reported its third-quarter net income fell to $29.9 million, or 51 cents a share, from $34.5 million, or 54 cents a share, in the same period a year earlier. Revenue increased to $709.5 million from $680.2 million a year ago, said the San Diego-based fast-food chain. Analysts surveyed by FactSet Research had expected earnings of 51 cents a share on revenue of $694.8 million. The company expects earnings of $2.01 to $2.05 a share in 2008. Wall Street is forecasting the company to earn $2.04 a share.

(5:58 PM ET) CHICAGO (MarketWatch) -- News Corp.'s
NWSNWS, -1.47%
owned-and-operated television stations are facing a "highly challenged" advertising market in the quarter that ends Sept. 30 after a weak June quarter, Chief Operating Officer Peter Chernin told analysts Tuesday. Struggling categories include automotive, telecommunications and financial services, Chernin said. At Fox Broadcasting, the company expects the network's ratings momentum from the 2007-08 season to result in an "upswing" when the new season starts in a few weeks. In top ad categories at Fox, "spending is up across the board," Chernin said.

Computer Sciences first-quarter net income rises

(4:43 PM ET) SAN FRANCISCO (MarketWatch) -- Computer Sciences Corp.
CSC, -16.88%
late Tuesday reported its first-quarter net income rose to $120.6 million, or 79 cents a share, from $108.1 million, or 61 cents a share, a year ago. The company noted its earnings from first quarter last year included special items of about 19 cents related to restructuring and an executive retirement agreement. Revenue increased to $4.44 billion from $3.84 billion a year earlier. Analysts surveyed by FactSet Research had forecast CSC to earn 76 cents a share on $4.29 billion in sales. The company expects revenue to come in between $4.25 billion to $4.35 billion and earnings of 70 cents to 80 cents a share in the second quarter. CSC projected earnings of $4.20 to $4.40 a share for 2009. Wall Street is predicting the company will earn 90 cents a share on revenue of $4.29 billion in the second quarter and earnings of $4.34 a share in fiscal 2009.

Whole Foods profit hit by charges

(4:32 PM ET) CHICAGO (MarketWatch)-- Charges and costs related to the acquisition of Wild Oats dragged down Whole Foods' fiscal third quarter profit, the upscale/organic grocer said Tuesday. The company said it earned $33.9 million, or 24 cents a share, down from $49.1 million, or 35 cents, in the year-ago period. Revenue came in at $1.84 billion, up from $1.51 billion with a same-store sales gain of 2.6%. The average estimate of analyst polled by Thomson Reuters had been for the company to earn 31 cents a share on revenue of $1.91 billion. Shares of Whole Foods
WFMI
jumped nearly 7% to close at $22.90 after scraping to a low of $20.18 last month.

Priceline.com second-quarter net income up on higher revenue

(4:30 PM ET) SAN FRANCISCO (MarketWatch) -- Priceline.com Inc.
PCLN, -0.20%
late Tuesday reported its second-quarter net income rose to $54.1 million from $34.6 million a year earlier. Net income applicable to common stockholders for each diluted common share was $1.08 compared with 79 cents in the second quarter of 2007. Adjusted net income in the second quarter rose 39.6% to $1.55 a share. Revenue increased to $514 million from $355.9 million a year ago, said the Norwalk, Conn.-based online travel services company. Analysts surveyed by Thomson Reuters had projected Priceline to post earnings of $1.41 a share on revenue of $496 million. The company expects adjusted earnings of $5.50 to $5.85 a share in 2008.

Glu Mobile losses grow on charges while revenue jumps

(4:18 PM ET) SAN FRANCISCO (MarketWatch) -- Glu Mobile Inc. saw its net losses grow in the second quarter on charges related to acquisitions and restructuring while revenue jumped by 45% for the period. The provider of mobile games
GLUU, -0.14%
reported a net loss of $6.6 million, or 23 cents a share, compared to a loss of $898,000, or 3 cents a share, for the same period last year. Revenue grew to $23.7 million from $16.4 million in the same period last year. Analysts were expecting a loss of 21 cents a share on revenue of $23.6 million, according to consensus estimates from FactSet Research.

News Corp. profit jumps 27%

(4:17 PM ET) CHICAGO (MarketWatch) -- News Corp.
NWSNWS, -1.47%
said Tuesday its quarterly profit rose 27% on improved results at its film studios and cable television networks, as well as gains related to its sale of stakes in Fox Sports Bay Area and Gemstar-TV Guide. The media conglomerate said it earned $1.1 billion, or 43 cents a share, compared with a profit of $890 million, or 28 cents a share, in the fourth fiscal quarter of 2007. Revenue rose 17% to $8.59 billion. Analysts polled by FactSet Research expected revenue of $8.59 billion. In a statement, Chairman Rupert Murdoch commented that the company faces "more challenging macro-economic conditions" in fiscal 2009, but is positioned to deliver "continued, if somewhat less robust, growth."

Wendy's profit falls by a third

(4:17 PM ET) CHICAGO (MarketWatch)-- Wendy's International -- in the process of being acquired by Triarc -- said Tuesday that second-quarter profit fell by a third, hurt by sharply higher commodity costs, flat revenue and investments in its new breakfast menu. After the close of trading, Wendy's
WEN, +2.48%
said it earned $19.9 million, or 22 cents share, down from $29.3 million, or 33 cents, in the year ago period. On a continuing operations basis, the company said it would have earned 30 cents a share, down from 41 cents. Revenue came in at $631.9 million, down 0.2%. Same-store sales -- those at outlets open at least a year -- at U.S. company-operated restaurants rose 0.1% while those at U.S. franchise restaurants increased 1.1%. The average estimate of analysts polled by Thomson First Call had been for the company to earn 37 cents a share on revenue of $627 million.

Clean energy funding jumps to record $5.8 bln

(11:31 AM ET) NEW YORK (MarketWatch) -- Cellulosic ethanol maker Range Fuels raised $158 million in financing and algae biofuels firm Sapphire Energy raised $50 million as investments in clean technology set a record of $5.8 billion in the second quarter, up from $2.6 billion in the year-ago period, according to research firm New Energy Finance. The $5.8 billion figure includes money from venture capital and private equity firms for the three months ended June 30. Private equity firm First Reserve Corp. put money into four deals. It bought Spanish-based photovoltaic builder Gamesa Solar for $407 million and the Italian PV project developer and engineering company Ener3, as well as investing $300 million in Osage Bioenergy, a U.S.-based ethanol-from-barley plant developer. It also made an investment in Kenersys, an India-based wind turbine manufacturer.

CORRECT: Emerson net up 7%, lifts low end of earnings view

(10:30 AM ET) LONDON (MarketWatch) -- Emerson
EMR, -0.80%
said fiscal third-quarter net income rose 7% to $612 million, or 78 cents a share, with sales up 14% to $6.57 billion. It would have earned 82 cents a share if a charge to sell its European appliance motor and pump business was excluded, the St. Louis engineering firm said. It increased the low end of its fiscal year view by five cents, now expecting earnings from continuing operations to range between $3.05 to $3.10 a share on sales of approximately $25 billion. Analysts polled by FactSet Research expected a profit of 80 cents a share for the quarter and $3.07 for the year. (Fixes net income.)

NitroMed reports profit, but warns of future losses

(9:42 AM ET) BOSTON (MarketWatch) -- NitroMed Inc.
NTMD
reported a second-quarter profit early Tuesday, but warned that it may incur losses in the future due to its decision to discontinue promotion for its lead product BiDil. The Mass.-based biotech group posted net income of $1 million, or 2 cents a share, compared with a loss of $6.2 million, or 16 cents a share, for the same quarter in 2007. Revenue was largely flat at $3.8 million versus $3.7 million. "Although the Company recorded net income in the second quarter of 2008, the Company has not been profitable in any prior quarter, has discontinued active promotion of BiDil, and may incur losses in future periods," NitroMed said, in a statement. NitroMed added that although it believes it has enough funds to conduct business for the next 12 months, it continues to evaluate "strategic alternatives." NitroMed discontinued promotion of its sole marketed product BiDil, a cardiac drug aimed at treating heart failure in patients of African descent, due to disappointing sales.

Vornado's FFO declines, missing expectations

(9:22 AM ET) BOSTON (MarketWatch) -- Vornado Realty Trust
VNO, +1.12%
in a regulatory filing Tuesday said funds from operations in the quarter ended June 30 fell to $1.27 a share from $1.72 in the year-ago quarter. Net income applicable to common shareholders dropped to 79 cents a share from 96 cents. The real estate investment trust said items and gains on real estate sales lifted net income by 29 cents a share, while items decreased FFO by 3 cents a share. Analysts polled by Thomson Reuters had forecast net income of 48 cents a share, and FFO of $1.34 a share, on average.

Expediters Intl. of Washington profit rises 9%

(9:17 AM ET) NEW YORK (MarketWatch) -- Expediters International of Washington
EXPD, +1.50%
said Tuesday that its second quarter profit rose 9%, to $71.2 million, or 32 cents a share, compared to $65.5 million, or 30 cents a share a year ago. Revenue rose 16% to $1.45 billion from $1.26 billion.

CORRECT: Weyerhaeuser swings to a loss on impairments

(9:17 AM ET) NEW YORK (MarketWatch) -- Weyerhaeuser Co.
WY, -0.27%
on Tuesday said it lost $96 million, or 45 cents a share in its second quarter, compared to a gain of $32 million, or 15 cents a share in the year-ago period. Items in the latest quarter included $206 million in real estate impairments and a $101 million gain from ownership restructuring of its Uruguay assets. Excluding items, earnings in the latest quarter were $7 million, or 3 cents a share. Revenue fell to $2.17 billion from $2.96 billion. Analysts surveyed by FactSet Research forecast a loss of 16 cents a share. Weyerhaeuser said it expects challenging market conditions to continue into the third quarter, with operating losses "slightly less than second quarter." The company also said it closed the sale of its containerboard packaging assets unit on Tuesday. (An earlier version of this report contained an incorrect spelling for Weyerhaeuser.)

Health Net reports lower profit, reduces forecast

(9:14 AM ET) BOSTON (MarketWatch) -- Health Net Inc.
HNT, -0.66%
early Tuesday posted a second-quarter net income of $76.7 million, or 71 cents a share, compared with $92.0 million, or 80 cents a share, for the same quarter in 2007. This year's quarter included a pre-tax restructuring charge of $13 million. Excluding the charge, Health Net would have posted adjusted earnings of 74 cents a share. Revenue increase to $3.8 billion from $3.5 billion. The company also lowered its 2008 financial forecast, stating it now sees earnings of $1.97 to $2.03 a share. Adjusted earnings are seen at $2.85 to $2.95 a share, down from $3.45 to $3.55 a share. Third quarter earnings should come in between 68 cents and 71 cents, with adjusted earnings of 89 cents and 71 cents. Health Net attributed the shortfall in part to escalating Medicare costs and lower-than-expected commercial membership.

US Airways traffic down 0.8% on year in July

(9:05 AM ET) NEW YORK (MarketWatch) -- US Airways Group, Inc.
LCC, +1.12%
said Tuesday that traffic in July fell 0.8% and capacity increased 0.4% compared with the same month a year ago. Load factor, or the percentage of the plane filled with passengers, was down 1.2 percentage points to 85.1%, the Tempe, Ariz.-based carrier said.

Cablevision weighing spin-offs, dividend, stock buybacks

(8:58 AM ET) NEW YORK (MarketWatch) -- Cablevision Systems Corp.
CVC, -0.47%
said Tuesday it's exploring a spin-off of one or more businesses and other potential strategies to enhance value for shareholders. The board of the Beth Page, N.Y. cable television programming and services giant authorized management to establish a policy on regular quarterly dividends or stock buybacks. "We are highly confident of the strength of our underlying businesses and our operating performance," said CEO James L. Dolan. "As we indicated last week we have a strong desire to close the value gap between our operating performance and the market value of our shares and, therefore, we will be actively looking at options to accomplish that." The company will retain investment banking firms and other advisors.

MGM's second-quarter profit tumbles

(8:55 AM ET) NEW YORK (MarketWatch) -- MGM Mirage
MGM, +0.69%
on Tuesday said second-quarter net income tumbled to $113.1 million, or 40 cents a share, from $360.2 million, or $1.22 a share, in the year-ago period. The latest per-share results include 4 cents of insurance recovery income related to the Monte Carlo fire. Net revenue, which subtracts promotional allowances from total revenue, fell to $1.90 billion from $1.94 billion. The Las Vegas-based company experienced a 4% decline in gaming revenue, while non-gaming revenue remained flat on a quarter-over-quarter basis. Analysts, on average, expected it to earn 43 cents a share, according to FactSet Research.

Acadia Pharma to slash 50% of workforce

(8:55 AM ET) BOSTON (MarketWatch) -- Acadia Pharmaceuticals
ACAD, -0.64%
said Tuesday that it plans to slash about 50% of its workforce, bringing its headcount down to around 65 employees. The drug developer said that the restructuring will allow it to focus on its lead drug candidate pimavanserin, a treatment for psychosis associated with Parkinson's disease. The product is currently in Phase III testing. Acadia will also continue two early-stage drug development programs that are currently being funded by Allergan Inc.
AGN, -1.02%
Earlier Tuesday, Acadia reported a second-quarter loss of $18.3 million, or 49 cents a share, compared with a loss of $10.8 million, or 29 cents a share, for the same quarter last year. Revenue fell to $177,000 from $2.1 million, due primarily to the completion of two collaborative agreements and lower revenue from its Allergan partnership.

Molson Coors profit falls by more than half from year ago

(8:45 AM ET) NEW YORK (MarketWatch) -- Molson Coors Brewing Co.
TAP, +0.16%
said Tuesday its second-quarter profit totaled $80.9 million, or 43 cents a share, from $184.9 million, or $1.02 a share, in the same quarter a year before. On a continuing operations basis, earnings were 50 cents a share, while analysts had expected earnings on average of $1.16 a share, according to a FactSet Research survey. Sales for the quarter totaled $2.36 billion from $2.24 billion a year before.

3Com raises forecast for fiscal first quarter

(8:38 AM ET) NEW YORK (MarketWatch) -- 3Com Corp.
COMS
said Tuesday that it is raising its forecast for fiscal first-quarter revenue to $335 million to $340 million, compared to the previous estimate of $325 million to $330 million. The company also expects its non-GAAP earnings per share to be in the range of 6 cents to 8 cents, compared to the prior view of 3 cents to 5 cents.

Rowan net falls 6% on increased costs

(8:13 AM ET) NEW YORK (MarketWatch) -- Rowan Companies Inc.
RDC, +2.00%
on Tuesday said second-quarter net income for the three months ended June 30 fell 6% to $120.6 million or $1.06 a share, compared to $128.1 million or $1.14 a share in the second quarter. Revenue increased to $587.1 million from $507 million. Wall Street analysts expected earnings of $1.04 a share, according to a survey by FactSet. Operational expenses for the period rose to $343 million from $275 million. The Houston offshore and on-shore drilling specialist said the prospective sale of its manufacturing unit has drawn interest from multiple parties and that it remains committed to completing a transaction by the end of the year.

Allied Capital swings to loss

(7:56 AM ET) NEW YORK (MarketWatch) -- Investnment firm Allied Capital
ALD, -0.58%
said Tuesday it lost $102.2 million, or 59 cents a share in the second quarter, compared to a profit of $89.2 million, or 57 cents a share a year ago.

CMS Energy net up by 33%

(7:45 AM ET) NEW YORK (MarketWatch) -- CMS Energy
CMS, -0.34%
on Tuesday said second-quarter net income for the three months ended June 30 rose to $44 million, or 19 cents a share, from $33 million, or 15 cents a share in the year-ago period. Adjusted income at the Jackson, Mich. electric and natural gas utility increased to 19 cents a share from 8 cents a share. Revenue rose to $1.37 billion from $1.3 billion. Wall Street analysts expected CMS Energy to earn 13 cents a share, according to a survey by FactSet Research.

Marvel earns 59 cents a share in quarter, lifts view

(7:44 AM ET) NEW YORK (MarketWatch) -- Marvel Entertainment Inc.
MVL, +9.47%
said Tuesday that second-quarter earnings rose to $47 million, or 59 cents a share, compared to $29 million, or 34 cents a share, in the same period a year ago. Sales were $157 million, compared to $101 million. Analysts polled by FactSet, on average, estimated earnings per share of 44 cents on sales of $132 million in the period. Marvel's Chairman Morton Handel said, "Revenue from Marvel's film production segment commenced in the second quarter with the release of Iron Man and The Incredible Hulk. We're very pleased with the success of these films which have generated $817 million in global box office receipts ..." Marvel raised its 2008 forecast of earnings per share to $1.55-$1.75 from $1.35-$1.55.

P&G net income up 33% to $3 bln

(7:32 AM ET) NEW YORK (MarketWatch) -- The Procter & Gamble Co.
PG, -0.08%
on Tuesday said fourth-quarter net income for the three months ended June 30 rose 33% to $3 billion, or 92 cents a share, from $2.27 billion, or 67 cents a share in the year-ago period. Sales rose 10% to $21.3 billion. The latest quarter's results included a benefit of 12 cents a share for tax reserve adjustments. Analysts surveyed by FactSet Research forecast earnings of 78 cents a share and revenue of $21.1 billion. "Operating margin was up due to overhead productivity improvements and increased pricing, which combined, more than offset a significant increase in commodity and energy costs," P&G said. The Cincinnati household products giant expects first-quarter earnings 98 cents to $1 a share vs. the forecast of $1 a share. Adjusted 2009 earnings are seen at $3.80 to $3.87 a share, compared to the analyst expectation of $3.83 a share.

Reliant Energy swings to $1.01-a-share profit in quarter

(7:27 AM ET) NEW YORK (MarketWatch) -- Reliant Energy Inc.
RRI, -1.56%
said Tuesday that second-quarter earnings were $359 million, or $1.01 a share, compared to a loss of $283 million, or 83 cents a share, in the same period a year ago. Revenue was $3.4 billion, compared to $2.6 billion a year ago. Analysts polled by FactSet, on average, estimated earnings per share of 2 cents on revenue of $3.4 billion in the period. Income from continuing operations before income taxes for the second quarter of 2008 was $582 million, compared to a loss of $456 million for the second quarter of 2007.

Duke Energy profit up 20%

(7:23 AM ET) NEW YORK (MarketWatch) -- Duke Energy
DKE, +23.15%
said second-quarter net income rose to $351 million, or 28 cents vs. $293 million, or 23 cents a share in the year-ago period. Adjusted net income rose to 27 cents a share from 24 cents a share. Revenue at the electric power giant rose to $3.23 billion from $2.97 billion. Duke Energy was expected to earn 24 cents a share on revenue of $3.3 billion, according to an analyst survey by FactSet. Duke booked 5 cents a share in gains from the impact of market-to- market hedges and a loss of 5 cents a share for impairments tied to Crescent Resources.

St. Joe Company swings to second-quarter loss

(7:23 AM ET) NEW YORK (MarketWatch) -- The St. Joe Company
JOE, +1.90%
said Tuesday its second-quarter loss totaled $20.8 million, or 23 cents a share, moving from a profit of $25.3 million, or 34 cents a share, in the same quarter a year before. Analysts had expected a profit of 11 cents a share, according to an average forecast in a FactSet Research survey. Revenue for the quarter was $67.7 million compared to $110.7 million in the year-ago period.

D.R. Horton narrows third-quarter loss

(7:19 AM ET) NEW YORK (MarketWatch) -- D.R. Horton Inc.
DHI, +0.97%
said Tuesday that it narrowed its fiscal third-quarter loss to $399.3 million, or $1.26 a share, from the year-earlier loss of $823.8 million, or $2.62 a share. The loss for the latest period included $330.4 million in pretax charges and write-offs. The Fort Worth, Texas, home builder said revenue for the period fell to $1.43 billion from $2.55 billion. On average, analysts polled by FactSet Research expected a loss of 46 cents a share. D.R. Horton said it closed on 6,167 homes in the latest quarter, compared with 9,643 in the year-ago quarter.

Archer Daniels fourth-quarter profit slips by more than half

(7:16 AM ET) NEW YORK (MarketWatch) -- Archer Daniels Midland Co.
ADM, -0.11%
said Tuesday its fourth-quarter profit dropped to $372 million, or 58 cents a share, from $955 million, or $1.47 a share, in the same quarter a year before. Analysts had expected earnings on average of 70 cents a share, according to a FactSet Research survey. Net sales for the quarter were $21.8 billion compared to $12.2 billion in the year-ago period.

Pioneer Drilling completes internal investigation

(6:44 AM ET) LONDON (MarketWatch) -- Drilling services company Pioneer Drilling
PDC, -0.18%
said Tuesday that a previously announced internal investigation into internal controls over financial reporting found no evidence of a material weakness in internal controls and no reason to restate its historical earnings. The group also said net income in the first quarter of 2008 fell 31% to $11.8 million, or 24 cents a share, from $17.2 million, or 34 cents a share, a year earlier. Revenue for the quarter ending March 31 rose 9.8% to $113.4 million.

W&T Offshore posts sharply higher quarterly profit, revenue

(6:33 AM ET) WASHINGTON (MarketWatch) -- W&T Offshore Inc.
WTI, +7.02%
reported second-quarter net income of $134.6 million, or $1.77 a share, up from $45.5 million, or 60 cents, earned during the same period during 2007. Quarterly revenue for the Houston-based provider of energy exploration services reached $461 million from the prior year's $272.6 million. On an adjusted basis, W&T Offshore would have had earnings of $1.86 a share, up sharply from 63 cents in second quarter of 2007. Growth in oil and gas production amounted to 2.4% from output during the first quarter of 2008, the company said. W&T Offshore also said it's revising lower its well count for 2008, to a range of between 30 to 35 wells from 50 previously, in part reflecting equipment delays. A majority of the wells removed from the 2008 program will be shifted into the 2009 program, the company said.

Cascades swings to loss

(6:31 AM ET) LONDON (MarketWatch) -- Paper and packaging company Cascades Inc.(CA:CAS)said Tuesday that it swung to a second-quarter net loss of CD25 million from a profit of C$45 million. Revenue for the period edged down to C$999M from C$1.01 billion. The group said operating income for the quarter fell 25% to C$61 million. The group said the decrease in profitability can by explained by the fact that selling price increases and cost cutting measures were not enough to offset cost inflation experienced since the beginning of the year.

CapitalSource profit drops as provisions rise

(6:30 AM ET) LONDON (MarketWatch) -- CapitalSource
CSE, -3.51%
said its second-quarter net income fell to $60.1 million, or 25 cents a share, from $84.3 million, or 45 cents a share, as loan-loss provisions rose to $31.7 million from $17.4 million. On an adjusted basis, the commercial lender would have earned 12 cents a share. Analysts polled by FactSet Research expected a profit of 28 cents a share.

Westlake Chemical net up 24%, tops forecast

(6:13 AM ET) LONDON (MarketWatch) -- Westlake Chemical
WLK, +1.83%
said second-quarter net income rose 24% to $47.3 million, or 72 cents a share, as sales climbed 41% on higher selling prices and volumes for most major products. Analysts polled by FactSet Research expected a profit of 37 cents a share.

Covidien returns to profit on 14% sales growth

(6:09 AM ET) LONDON (MarketWatch) -- Healthcare products firm Covidien Ltd.
COV, -3.26%
said it swung to a fiscal third-quarter profit of $269 million, or 53 cents a share, as sales rose 14% to $2.6 billion. It lost $1.11 billion in the year-ago period on its portion of a class-action settlement involving former parent Tyco International. On an adjusted basis, Covidien would have earned 72 cents a share, compared to FactSet Research-compiled estimates of 66 cents a share. The company said it's on track to meet its 2008 financial goals.

Northern Rock reports $1.2 billion loss as arrears grow

(2:53 AM ET) LONDON (MarketWatch) -- Northern Rock said Tuesday that it swung to a first-half net loss of 592.2 million pounds ($1.16 billion), from a profit of 188.2 million pounds a year earlier. The mortgage bank, which was nationalized after being forced to seek emergency loans from the Bank of England, said the proportion of residential accounts over three months in arrears jumped to 1.18% at the end of June, from 0.45% at the end of December. It added the net borrowings from the central bank have been reduced to 17.5 billion pounds from 26.9 billion pounds at the start of the year and that retail balances have risen to 14.2 billion pounds from 10.5 billion pounds in December.

Beiersdorf profit up 42% on 8.5% sales growth

(2:36 AM ET) LONDON (MarketWatch) -- Skin-care products maker Beiersdorf(DE:520000)said first-half profit rose 42% to 292 million euros, with revenue up 8% to 3.09 billion euros. For the year, it expects sales to grow faster than the market and its adjusted operating margin to rise.

Drax profit down 46% as coal prices rise

(2:31 AM ET) LONDON (MarketWatch) -- U.K. coal-fired power station operator Drax Group(UK:DRX)said Tuesday that its first-half net profit fell 46% to 118.2 million pounds ($231.9 million), while revenue grew 25% to 801.8 million pounds. The group said an increase in average achieved power price during the period was more than offset by higher coal and carbon costs. The group said it expects earnings before interest, taxes, depreciation and amortization to be modestly above 400 million pounds for the year, compared to 506 million pounds in 2007.

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